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ITC Hotels Ltd reported a 53% year-on-year rise in net profit for Q1 FY26, reaching INR 133.71 crore. This growth was supported by increased travel demand and a boost in operating revenue, which climbed to INR 815.54 crore. Higher room rates, solid occupancy, and strong food and beverage performance across urban and resort destinations contributed to the uptick. Expenses rose due to service upgrades and inflationary costs, but margins remained stable. Pursuing an asset-light expansion model, the company continues to grow its presence via managed properties. A rebound in corporate travel, leisure tourism, and MICE activities has further strengthened sectoral momentum.
ITC Hotels Ltd reported a consolidated net profit of INR 133.71 crore for the first quarter ended June 30, 2025, marking a 53% increase over the INR 87.16 crore it earned during the same period last fiscal. This strong bottom-line growth reflects a combination of higher operating revenues and sustained travel demand across both urban and resort destinations. Advertisement
The hospitality business saw a solid increase in revenue from operations, which rose to INR 815.54 crore compared to INR 705.84 crore in the corresponding quarter last year. This growth is indicative of continued improvement in average room rates (ARR), healthy occupancy levels across hotel categories, and consistent traction in its food and beverage offerings, especially within its business and luxury travel portfolios.
While top-line momentum remained strong, total expenses during the quarter also climbed to INR 674.97 crore, up from INR 596.41 crore a year ago. The rise in expenditure is attributed to operational scale-up, inflationary pressures on utilities and staffing, as well as ITC Hotels' ongoing efforts to enhance service offerings and property-level upgrades. Notably, the increase in costs has not dented margins significantly due to higher revenue absorption and efficient cost management across the chain.
ITC Hotels, which operates under multiple premium brands including ITC Hotels, Welcomhotel, Storii, and Mementos, has been actively pursuing an asset-light strategy in recent years. It has ramped up the number of managed properties and entered newer domestic markets through strategic signings and conversions. This approach has allowed the company to expand without a proportionate rise in capital expenditure, making it more resilient to market cycles.
Additionally, the company's growth aligns with the overall sectoral recovery in India's hospitality space, driven by rising domestic leisure travel, gradual international arrivals, and strong demand for high-quality hospitality infrastructure in tier 1 and tier 2 cities. Industry-wide trends also show a revival in corporate bookings and MICE (Meetings, Incentives, Conferences, and Exhibitions) segments, which further supports sustained revenue inflow.
Source PTI
5th Jun, 2025
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